CMDA looks to MAIT

NEW DELHI, INDIA: Computer Media Dealers Association (CMDA) Delhi has sent a reminder letter to MAIT asking for more support from the association to improve their way of doing trade. It may be noted that CMDA already sent letters to MAIT asking it to urge the vendors to drop the practice of doing sales by giving backend incentives and do upfront business.

Puneet Singhal, President, CMDA in his letter to MAIT has again highlighted the problems faced by the channels due to the backend incentives given by the vendors and has urged the industrial body to intervene and ask its members (vendors) to stop the practice of issuing backend incentives. The letters have also been sent to vendors like HP, Samsung, Epson and Canon.

“This is our fourth letter to MAIT and the vendors, and nobody has even bothered to give a reply. Due to the backend incentives, the channels are facing so many liabilities like paying VAT and service tax for that and end up in serious problems. On the other hand, due to the practice of setting targets, many partners are forced to discount and the default cases are rising everyday,” claimed Manoj Khanna, Secretary, CMDA.

He also claimed that there is no transparency and deadlines set for the channels in issuing backends and the vendors are bullying the channel.

Vinnie Mehta, Executive Director, MAIT said that the letters sent by CMDA has been circulated among its members. “It is the responsibility of our members to address these claims and we don’t have any say on their business,” added Mehta.